Eland Oil And Gas Spud First Oil From OML 40

Yemisi Izuora 

Nigeria’s push for raising its oil production received a boost as Eland Oil & Gas Plc, on Thursday said first production from the Gbetiokun oilfield, located in Nigeria, was achieved via the early production facility at licence OML 40.

The production and development company said that, following mobilisation of the early production facility to the Gbetiokun field and completion of all pre-commissioning checks throughout July, the field came on-stream on Wednesday. 

In line with expectations, Eland said it anticipates initial gross production to rise to 12,000 barrels of oil per day, with 5,400 barrels of this net to Eland, from the Gbetiokun-1 and Gbetiokun-3 wells over the next seven days.

“We are delighted to reach first oil from the Gbetiokun field,” said Eland Chief Executive George Maxwell.

“Gbetiokun will deliver additional cash flow for Eland, and we are excited for the development of the licence going forward, with the further infill drilling on Gbetiokun and Opuama and the near-field exploration of Amobe prospect in 2019,” added Maxwell.

The OML 40 licence lies onshore within the Niger Delta, approximately 65km northwest of Warri, and covers an area of 498 square kilometres.

The Company completed the acquisition of a 45 per cent equity stake in OML 40 in September 2012 and has been producing oil from the Opuama field since 2014. The Gbetiokun field, which was discovered in 1987 and further appraised in early 1990s, has never been developed. 

Eland has been progressing this field development with a 2018 re-entry into the discovery well for data gathering and a new appraisal well. A field development plan was reviewed with government, with development drilling and early production planned for 2019.

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